Page 9 - California Buyers & Sellers Guide
P. 9
TYPES OF
COVERAGE
2. ALTA Standard Owners Policy:
Please visit our website at
www.ctic.com for a complete The Owner’s Standard Policy will cover the buyer
chart showing a deeper comparison of the against issues that could be discovered by an
three forms of coverage below: examination of Public Record.
Examples of these would be:
• A document upon which your title is based was
1. Homeowner’s Title Insurance Policy: not properly filed, recorded or indexed in the
The Homeowner’s Policy is only available on Public Records.
single family homes to fourplexes. It must be • Someone else has a right to limit your use of
owned by a “natural person” and not an entity the land.
such as a corporation or an LLC. In addition to
the protections offered in the Standard Policy, • Someone else claims to have rights affecting
the Homeowner’s Policy extends coverage your title arising out of forgery or impersonation.
beyond the issue date. • Someone else owns an interest in your title.
Examples include:
• You cannot use the land because use as a 3. ALTA Extended Owners Policy:
single family residence violates an existing The Extended Owner’s Policy offers the most
zoning law or regulation.
extensive title insurance as it covers not only
• You are forced to remove your existing matters of Public Record but also insures issues
structures which encroach onto an that are revealed as a result of a physical inspection
easement or over a building set-back line or survey of the property. This is commonly issued
even if the easement or building set-back for high value residential properties, large parcels of
line is excepted in your title policy. vacant land and commercial properties.
• You do not have both actual vehicular and
pedestrian access to and from the land Policy coverage examples include:
based upon a legal right. • You are forced to remove your existing structures
because they encroach onto our neighbor’s land.
• Someone else has a legal right to, and does,
refuse to perform a contract to purchase the
land, lease it or make a mortgage loan on it
because your neighbor’s existing structures
encroach onto the land.
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